Location decision for foreign direct investment in ASEAN countries: a TOPSIS approach

This study examines the location decision for foreign direct investment in ASEAN countries using TOPSIS¹ approach, which provides a relatively simple tool for this strategic decision making problem. By using TOPSIS method, the capacity and attraction of ASEAN countries is evaluated and given final rank for period 2000-2005. Within the model, ten indicators are defined as determinants of FDI inflows. The empirical results indicate that Singapore is the most attractive for investment among ASEAN countries while ranking of some countries have changed during these years.